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Apply PESTEL analysis to the European Brewing Industry identifying key opportunities and threats in 2010.

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  • Essay length: 452 words
  • Submitted: 17/03/2011
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AS and A Level Case Studies and Analysis

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European Brewing Industry

Q) Apply PESTEL analysis to the European Brewing Industry identifying key opportunities and threats in 2010.

PESTEL analysis:

Political factors:

* The government is campaigning strongly against drunk-driving, which is affecting the tendency to drink beer in restaurants, pubs and bars

* The Government has the power to set potential fines for the industries that do not meet there standard law requirements

* Decline in traditional key markets such as the United Kingdom is due to the fact that there is growing hostility towards 'binge drinking'

* Restrictions on packaging, such as; the usage of cans in Denmark

Economical factors:

* Low growth in consumption of beers

* In the European industry where beer growth is historically high, there is a decline in the demand for beer, whilst in the developing economies such as; China and Brazil, the consumption of beer is steadily growing

* Growing trend towards cross-border mergers

* A recession creates increased activity at the lower ends of product price ranges, therefore the rate of interest will increase depressing business and causing lower spending levels along the way

Social

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